As buyers worldwide made a mad sprint for money this month, they seemingly bought something that they may, together with shares, bonds, foreign exchange, and even treasured metals.
Whereas gold and silver usually see elevated curiosity when different belongings fall, the worldwide liquidation has despatched costs for the metals crashing as a substitute. Within the final two weeks, gold has tumbled a staggering $215 per ounce, buying and selling Friday close to $1,490, a lack of over 12%.
In the meantime, silver, which is valued partially for its industrial purposes, has misplaced over a 3rd of its worth since late February, buying and selling as little as $11.75 per ounce this week.
Whilst massive buyers dump their metals holdings, pushing the worth decrease, retail buyers appear to be flocking to coin retailers, shopping for silver cash and bars at vital premium to the futures markets. In some cases, demand is so excessive that costs are close to $19 per ounce for small purchases, a markup of over 50%.
Opinions are solely the writers’. Walt and Alex Breitinger are with Breitinger & Sons LLC, a commodity futures brokerage agency in Valparaiso. They are often reached at (800) 411-3888 or www.indianafutures.com. This isn’t a solicitation of any order to purchase or promote any market.